Many home buyers and sellers are continuing to sit on the sidelines as home prices fall and interest rates rise. New listings fell 23.3% from March 2022 to March 2023 because homeowners made the decision to stay in their homes rather than move and face higher interest payments on a new house.
The median U.S. home price fell 3.3% in March this year to $400,528, according to a new report by the real estate brokerage Redfin. This was the largest year-over-year drop since 2012.
Worst hit by the slump in prices were "pandemic boomtowns and pricey Bay Area markets," the report noted. The worst affected market was Boise, ID, where the cost of a home fell 15.4% in the year. By comparison, home prices there surged 41% in May 2021, and nationally prices rose 26%, stimulated by low mortgage rates, remote work and relatively affordable housing.
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